Understanding Business Structures in Canada

Front

A business with only one owner who pays personal income tax on profits.

Back

Sole Proprietorship

Front

Limited liability for the owners.

Back

Corporation

Front

It is simple to set up and manage.

Back

Sole Proprietorship

Front

Personal assets are at risk if the business fails.

Back

Sole Proprietorship

Front

Can raise money by selling shares to investors

Back

Corporations

Front

Ability to pay lower taxes on retained earnings.

Back

Corporation

Front

A _____ is a good choice for those who plan to grow and pursue the business long-term.

Back

Corporation

Front

A ____ is a separate legal entity from its owners.

Back

corporation